Q: Can you please give best advice for purchasing a Copper stock today and also a recommended etf with Copper exposure. Thanks
5i Research Answer:
Copper, like most metals, is highly cyclical, and particularly sensitive to China and global growth. This week, copper stock surged on news that China was cutting production, setting off a possible supply imbalance at the same time when many expect a resumption of global growth (through lower interest rates). Timing of purchases can thus be very difficult. We think some exposure makes sense. When copper moves, it tends to move 'big' and thus entry prices are less important IF the sector does move. One can always buy a half position and then fill the position on weakness. We would suggest at least a two year timeframe, and it is not a buy-and-forget sector by any means. We like CS and LUN today. For an ETF, COPX.